Top Cash ISA Rates for 2025: Where to Get the Most for Your Money
By Boring Money
23 Jan, 2026
Cash ISAs have gained popularity in recent years, increasing 7% in the last 2 years alone. An estimated 38% of UK adults hold a Cash ISA. [1] Many Cash ISAs offer competitive terms thanks to fluctuating interest rates and banks competing for savers, so if you’re not checking in regularly, you could be missing out on maximising your savings.
Each week, we update this guide with the latest Cash ISA rates at the top of the UK market, to help you find the highest-paying ISAs around.
What is a Cash ISA?
A Cash ISA (Individual Savings Account) is a type of tax-free savings account available to UK residents. It allows you to earn interest on your cash savings without paying tax, so you can focus on growing your pot. Each tax year, you can deposit up to the £20,000 annual allowance into Cash ISAs without incurring tax liability on your interest earnings. This will be changing to £12,000 in April 2026.
Unlike regular savings accounts, where interest above the Personal Savings Allowance (currently £1,000) is taxed, Cash ISAs allow all your interest to stay in your pocket - no matter the amount. This makes them particularly appealing for those looking to stash a decent sum away without the taxman getting involved.
What is the difference between a Cash ISA and other types of ISA?
ISA Type | Description | Annual Limit | Eligibility | Purpose |
Cash ISA | Tax-protected savings account that holds cash reserves | £20,000 (counts toward £20,000 ISA allowance) changing to £12,000 in 2026 | UK adults (16+) | Short to medium-term savings, emergency funds |
Stocks & Shares ISA | Tax-protected investment account for stock market investments | £20,000 (counts toward £20,000 ISA allowance) | UK adults (18+) | Medium to long-term investment, growth potential |
Lifetime ISA (LISA) | Tax-protected savings with 25% government bonus | £4,000 (counts toward £20,000 ISA allowance) | UK adults aged 18-39 (can continue contributing until age 50) | First-time home purchase or retirement savings |
Junior ISA (JISA) | Savings account for children that converts to a normal ISA at age 18 | £9,000 | UK resident children | Saving for a child's future |
Notes:
The total ISA allowance across all ISA types (except Junior ISA) is £20,000 per tax year per person. Junior ISAs have a separate £9,000 allowance per child.
Easy access vs fixed-rate Cash ISAs
When it comes to Cash ISAs, not all options are created equal. Choosing the right type depends on your financial situation, goals, and how soon you might need to access your money. Let's break down the two main varieties to help you decide which one best suits your needs.
There are two main types of Cash ISA: easy access and fixed-rate.
Easy access
An easy access Cash ISA allows you to withdraw money from your account, making it ideal for those who want flexibility. However, some providers have a cap on the number of withdrawals you can make, or reduce the interest on your account if you exceed a certain number of withdrawals in a given period. The interest rates on these ISAs are typically variable, meaning they can fluctuate, and are heavily influenced by the Bank of England's base rate.
Fixed-rate
A fixed-rate Cash ISA, on the other hand, locks your money away for a set period (usually 1-5 years) in exchange for a guaranteed interest rate. The trade-off is that early withdrawals may come with penalties, so this option is best for those who are certain they won't need access to their savings before the end of the fixed-rate term.
What is a flexible ISA?
Beyond the choice between easy access and fixed-rate ISAs, there's another important feature to consider: flexibility. Some Cash ISAs (of either type) come with a "flexible" feature that can significantly enhance how you manage your savings throughout the tax year.
A flexible ISA lets you withdraw and replace money within the same tax year without it counting against your annual ISA allowance.
Essentially, flexible ISAs let you "borrow" from your ISA temporarily without penalty, as long as you replace it in the same tax year.
Top easy access Cash ISA rates
Provider | AER (%) | Min Deposit (£) | Eligibility |
Plum | 4.32% | £1 | New customers only |
Moneybox | 4.32% | £500 | New customers only |
Atom Bank | 4.25% | £1 | New deposits only, transfers in from other ISA providers are not accepted |
Vida Savings | 4.05% | £500 | |
Bank of Ireland UK | 3.95% | £100 | Online only |
Data correct as at 23 January 2026. Please ensure you read the Terms & Conditions on the provider's website to confirm this product is suitable for your needs. Due to the rapid fluctuation of rates in the financial market, Boring Money cannot guarantee that the rates quoted will remain the most competitive available. Firms may charge account fees for holding a Cash ISA.
Top fixed-rate Cash ISA offers
1-year fixed-rate Cash ISAs
Provider | AER (%) | Min Deposit (£) | Eligibility |
Shawbrook Bank | 4.14% | £1,000 | 90 days interest penalty for early withdrawal |
Coventry Building Society | 4.13% | £1 | 90 days interest penalty for early withdrawal |
Tandem Bank | 4.12% | £1 | 90 days interest penalty, app-based |
Data correct as at 23 January 2026. Please ensure you read the Terms & Conditions on the provider's website to confirm this product is suitable for your needs. Due to the rapid fluctuation of rates in the financial market, Boring Money cannot guarantee that the rates quoted will remain the most competitive available. Firms may charge account fees for holding a Cash ISA.
2-year fixed-rate Cash ISAs
Provider | AER (%) | Min Deposit (£) | Eligibility |
Cynergy Bank | 4.11% | £500 | 180 days interest penalty |
Tandem Bank | 4.05% | £1 | 180 days interest penalty, app-based |
Aldermore | 4.02% | £1,000 | Online only |
Data correct as at 23 January 2026. Please ensure you read the Terms & Conditions on the provider's website to confirm this product is suitable for your needs. Due to the rapid fluctuation of rates in the financial market, Boring Money cannot guarantee that the rates quoted will remain the most competitive available. Firms may charge account fees for holding a Cash ISA.
3-year fixed-rate Cash ISAs
Provider | AER (%) | Min Deposit (£) | Eligibility |
Cynergy Bank | 4.15% | £500 | 180 days interest penalty |
Aldermore | 4.07% | £1,000 | 180 days interest penalty |
Tandem Bank | 4.05% | £1 | 270 days interest penalty, app-based |
Data correct as at 23 January 2026. Please ensure you read the Terms & Conditions on the provider's website to confirm this product is suitable for your needs. Due to the rapid fluctuation of rates in the financial market, Boring Money cannot guarantee that the rates quoted will remain the most competitive available. Firms may charge account fees for holding a Cash ISA.
5-year fixed-rate Cash ISAs
Provider | AER (%) | Min Deposit (£) | Eligibility |
Tandem Bank | 4.18% | £1 | Online only |
Hampshire Trust Bank | 4.18% | £1 | New and existing customers |
Shawbrook Bank | 4.15% | £1,000 | New and existing customers |
Data correct as at 23 January 2026. Please ensure you read the Terms & Conditions on the provider's website to confirm this product is suitable for your needs. Due to the rapid fluctuation of rates in the financial market, Boring Money cannot guarantee that the rates quoted will remain the most competitive available. Firms may charge account fees for holding a Cash ISA.
Common Cash ISA mistakes to avoid
Leaving money in a low interest ISA account: Many people stick with older Cash ISAs paying dismal rates. Check your rate regularly and consider transferring to an ISA with a more competitive rate if necessary.
Not using your ISA allowance: Your annual ISA allowance doesn’t roll over. If you don’t use it by 5 April each year, you lose it.
Assuming all Cash ISAs work the same way: Not all easy access Cash ISAs allow you to dip in and out an unlimited number of times, for example, and may have a cap for each tax year. Always read the fine print before opening an account.
Failing to transfer ISAs properly: If you want to move your Cash ISA to a provider with a better interest rate, make sure you use the official ISA transfer process. Withdrawing from the tax-free ISA wrapper and depositing back in manually could result in losing your tax-free benefits. Different providers may also charge exit fees so make sure to check the small print when moving your money around.
Conclusion
Maximising your tax-free interest through a Cash ISA is a smart financial move for the 2025-26 tax year.
Whether you prefer the flexibility of an easy access account or the certainty of a fixed-term ISA, staying updated on the best available rates will help you achieve your savings goals. Remember to consider your personal financial needs and the terms of each account before making a decision.
As rates often fluctuate, reviewing your options regularly ensures you’re always getting the most bang for your buck. If your current Cash ISA isn’t working hard enough for you, it might be time to shop around.
Please note that interest rates are subject to change. It’s advisable to check with the respective banks or financial institutions for the most current rates before making any financial decisions.
---
[1] Boring Money, January 2025
